Coventry city council was today officially ranked as one of the worst authorities in the country - for the second year running.

Although the city's biggest employer has improved some services, it is still rated as "poor". Social care for children and families, housing benefits payments and the library service are all getting better.

But that has failed to convince the Audit Commission to give the city council a better ranking.

Coventry is among only 10 councils in England rated poor in the commission's second national town hall league tables. Last year there were 13.

The rating will raise the political heat when councillors come to set next year's budget which is facing at least a £7.7 million gap - mostly in social services.

Council chiefs today stressed progress has been made since last year and claim they missed getting into the "weak" category by just one point.

Social services has risen from zero stars to one star this year and the city's child protection team has come out of special measures after five years.

The city's youth offending team got one of the highest gradings in the country from the Youth Justice Board - and improvements are being put in place in the collection of council tax and payment of housing benefits.

Coventry council leader John Mutton and chief executive Stella Manzie are hoping Coventry will go up into the "weak" category early next year.

The Audit Commission is coming back in February to look at the council's ability to improve - its vision, focus, ability to prioritise, resources and management structure. If Coventry passes, it will go up a category.

Council leader John Mutton said: "I'm very pleased with the progress we have made and all the hard work is paying off. We are still a long way from the excellent council we strive to be, but I believe the progress so far is proof of our commitment to improving our overall performance.

"The Local Government Minister Phil Hope has personally told me that he is impressed with the way the city council is turning itself around and that is why he announced last week that we are to be reassessed in February."

Chief executive Stella Manzie said the council's plan has had a "great impact". She said: "Over the past year we've focused on new ways and styles of working, and as a result our services in many areas have improved significantly.